Liquidity Pools

Nami uses Algebra Integral concentrated liquidity pools to facilitate swaps between token pairs.

Liquidity providers (LPs) allocate capital within defined price ranges. A position’s liquidity participates in swaps while the market price remains within its range.

Pools are classified as Permissionless Pools (ungauged) or Permissioned Pools (gauged).

Their status determines eligibility for NAMI emissions and how swap fees are distributed.

Permissionless Pools

Anyone can create a concentrated liquidity pool on Nami without prior approval.

Permissionless pools are ungauged: they operate independently of NAMI emissions.

99% of swaps fees are distributed directly to liquidity providers, with 1% allocated to Algebra.

The permissionless model also enables third-party protocols and applications to use Nami’s infrastructure to integrate swaps and liquidity management into their own products.

Permissioned Pools

Permissioned Pools participate in Nami’s voting and incentive system through a gauge, which manages the distribution of liquidity incentives to LPs.

These incentives are funded by NAMI emissions, allocated through veNAMI voting.

100% of swap fees from permissioned pools are distributed to Nami users, split between voters and ogNAMI stakers.

Gauge activation

A Permissionless Pool can become a Permissioned Pool through gauge activation.

Gauge activation requires Nami’s approval and is based on the pool’s ability to contribute productively and efficiently to the Nami ecosystem.

Once activated, the pool becomes eligible for NAMI emissions and adopts the fee distribution applicable to Permissioned Pools.